Australian iron ore producer Fenix Resources has announced that it has entered into a freight partnership with dry bulk vessel operator Mira Bulk, a move aimed at lowering shipping costs for its iron ore products while supporting the company's production growth plans.
The agreement is accompanied by the securing of $44 million in new long-term funding facilities from ResInvest and an expansion of Fenix’s iron ore sales and marketing arrangements.
Freight partnership targets lower shipping costs
Fenix has formed the Fenix-Mira Bulk freight partnership with Mira Bulk, a dry bulk vessel operator jointly owned by ResInvest and Vaiana Shipping Limited. Under the arrangement, Fenix will pay market-rate commissions and earn a share of the partnership's profits based on shipped iron ore volumes.
According to the company, the partnership is intended to reduce freight costs through greater vessel scale and provide preferential access to shipping capacity.
ResInvest provides $44 million in funding facilities
The new partnership has enabled Fenix to secure $44 million in long-term funding facilities from ResInvest, replacing existing short-term prepayment facilities. The company said the financing will strengthen its balance sheet and support execution of its Three-Year Production Plan.
The facilities comprise:
- $9.28 million prepayment facility,
- $35 million term facility.
According to Fenix, the new arrangements extend funding maturities to two years, reduce refinancing risk and provide a stronger capital base to support production growth through FY28.
Fenix's production plan targets iron ore output of 4.2-4.8 million mt in FY26, rising to up to six million mt by FY28.
